Unfortunately that a Totton residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Totton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Totton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in Totton with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you enhanced control over the value of your Totton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy correspondence with the landlord of her two bedroom flat in Totton, Sophie initiated the lease extension process as the eighty year threshold was swiftly coming. The legal work was concluded in July 2009. The landlord’s charges were restricted to below 600 GBP.
Last Winter we were e-mailed by Mrs Tia Wilson , who was assigned a lease of a garden flat in Totton in June 2011. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable flats in Totton with an extended lease were valued around £186,000. The mid-range amount of ground rent was £65 collected yearly. The lease end date was on 2 March 2084. Having 58 years remaining we calculated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including expenses.
Last Spring we were approach by Dr Kai Bennett , who completed a purpose-built apartment in Totton in September 2011. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Totton with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2095. Having 69 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.